Toby Whittome, Sales Director at Jackson-Stops London, shares his insights on what we should expect to see from the London property market next year:
With 2018 fast approaching its that time of year again when we offer up our London property market predictions for the next 12 months. It will come as no surprise when I say that punitive stamp duty levels and economic and political uncertainty have taken their toll on the Capitals property market in 2017, but as we move into 2018 we do expect house price growth to remain stable. If Chancellor Philip Hammond fails to address stamp duty reform across all levels of the market in his upcoming Autumn Budget, high-value home owners (1 million and above) will continue to feel the strain and sales levels and average prices will remain immobile.
It is worth remembering that stamp duty land tax is not just causing issues for the top end of the market. Most people aspire to move up the property ladder and if owners of larger, more expensive homes are reluctant to sell up it can really stymie upward progress.
Located on the doorstep of Harrods, this two bedroom apartment is available for £3,150 per week through our Mayfair branch. Turning our attention to the rental market, we predict prices will overall remain the same, but with a possible increase of around 1%.
A magpie market is currently affecting the London rental market, with tenants parting with more money in exchange for well-located, exceptional quality rentals. This is having a knock-on impact on the lower end of the market, with properties remaining vacant as landlords are either no longer financially able or willing to spend time renovating. With Brexit negotiations underway, we can also expect to see an increase in young professionals currently renting in London becoming hesitant about renewing their contracts, as their employers start to seriously consider relocating their staff to locations such as Dublin and Frankfurt.
In more positive news, now is a good time to be a new home purchaser in London, and we expect this trend to continue into 2018. Although there is uncertainty around Brexit negotiations and the impact of the interest rate rise, such factors are unlikely to influence the man on the streets decision to buy a pristine, previously unlived in, new home.
In central London, we will start to see listed housebuilders dominate supply, focusing their time on acquiring new sites where resales are under 800 per square foot. This suggests we may start to see a shortage of new homes over 1 million launching to the market, with buyers having to compete to bag their dream London home.
